Ivy League, Ivory Tower?

I usually read Chris Anderson's Long Tail blog. Two weeks he posted a reaction to this, the composition of creating blockbusters, from a Harvard professor.

While I only have a single collegiate degree, I can surmise my views of John Quelch's position could easily be dismissed.

Quelch means well, in the regard that all companies should strive to create "Blockbusters" for products. However, if all that is produced is blockbusters, then eventually nothing becomes blockbusters. There's no way to differentiate. Add to that is the general blockbuster is a lowest common denominator product. Blockbusters are successful because they appeal to the masses.

Quelch's "requirements" for blockbusters don't exactly break new ground in creating products worthy of the market. My comments in italics.

1. Sheer size. A blockbuster has a transformational impact on a company and an industry, often opening up new markets worldwide. Blockbusters break sales records and exceed expectations. Around 100 pharmaceutical brands exceed $1 billion in annual sales. Procter & Gamble has 23 such brands. Like Chris' explanation before, this is a definition of blockbuster.

2. Speed. It's not just the sales volume; it's the speed of the sales trajectory. Remember that the original blockbuster was a bomb that could destroy an entire city block. Blockbuster brands address pressing consumer needs so well that they often enjoy vertical sales liftoff. Think Viagra. I believe speed is a result of marketing, not a product. It also has to do with market delivery.

3. Scarcity. A blockbuster brand is often in such high demand that stock-outs and shortages occur in the market. Remember the consumer lines to buy the new iPhone? As imitation is the sincerest form of flattery, the speedy availability of counterfeits is another indicator of popularity. Don't think so, Q. If a product is scarce, then it is unable to bring in revenue until the next delivery. And then it runs out again. And the cycle repeats. So instead of one giant skyscraper dominating the market landscape, you have a bunch of 50-story buildings. Counterfeits don't only indicate popularity, they also indicate gullible consumers, overpriced products, and lack of competition.

4. Sustainability. A blockbuster brand is not a one hit wonder. It is a gift that keeps on giving. Remember Intel's Pentium chip. Or look at the seven Harry Potter books and five companion movies. Adding DVD and merchandise sales, theme parks, etc., Advertising Age valued the Potter economy at $15 billion. Um...yeah. A blockbuster is not sustainable. If a blockbuster continues to grow as the market grows, it's an under-utilized market. A blockbuster brand is a one-hit wonder. If it isn't then it's a monopoly.

5. Sizzle. A blockbuster does not just address an important need. It does so in an exciting and accessible way. Pfizer's Lipitor was not the first cholesterol reducer but superior marketing and sales made Lipitor number one. And in the movie world, think of the magical and memorable special effects in the Star Wars series. Again, this is called marketing.